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Israel’s Netafim gets $22 mln contract in Peru

Netafim, the world’s leading company in providing smart water solutions for agriculture, through its Peruvian subsidiary, has entered into an EPC agreement with Maple, under which Netafim will provide engineering, procurement and construction of a drip irrigation system and become the exclusive supplier of smart irrigation solutions for Maple’s sugar cane project to be constructed and operated in Peru.

The project, spanning close to 8,000 hectares of land in northern Peru, will include cultivation of sugar cane crops intended for the production of electricity and ethanol. The project is expected to be completed by 2010. The transaction is valued at approximately $22 million.

According to the agreement signed by Netafim Peru, Netafim is set to become the exclusive provider of its proprietary equipment and irrigation solutions to Maple’s project.

As a result of a combination of stable weather patterns throughout the year, the scarcity of rainfall and the relative availability of water, sugar cane is rapidly becoming one of the principal crops cultivated in Peru.

Netafim is highly active in South America and has recently expanded its activity in Peru. Ofer Bloch, President and CEO: “Netafim’s unique and proprietary smart water solutions enable optimized conditions for cultivating sugar cane intended for the production of ethanol.”

Sources in the company noted that: “Netafim believes this to be the first in a series of large-scale bio-fuel cane projects which Netafim expects to materialize in the near future.” (Reuters)